# Liquidity pools To ensure smooth functioning of the protocol, each Watt asset has a **dedicated liquidity pool on Raydium**. The simultaneous existence of both an original token liquidity pool and a Watt asset liquidity pool creates opportunities for arbitraging price differences between them. This arbitrage activity serves as one of the primary yield drivers for Watt asset holders and liquidity providers. The protocol enables users to create Raydium CPMM pools using liquid-staked Watt tokens, allowing them to **earn both Raydium APR and Watt APR**. Watt liquidity pools: * are deployed on Raydium CPMM. * require a minimum level of liquidity to be visible and selectable within the app's user interface. * earn a share of the protocol's fees, which must be actively claimed by the liquidity providers. * can help offset impermanent loss by providing yield from both Raydium and Watt sources. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.watt.si/the-protocol/liquidity-pools.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.